Community Rights - how to nominate or bid for an asset

Communities now have the opportunity to identify assets (buildings and land) which are important for their social well-being and bid for them if they come onto the market.

The Community Right to Bid allows voluntary and community organisations to nominate privately and publicly owned assets for inclusion on a register of assets of community value.

If something on this register is offered for sale community interest groups will have up to a maximum of six months to prepare a bid to buy it. This gives community groups an increased chance to save local facilities by developing a proposal and raising the required capital.

At the end of the six month period, the owner is free to sell the asset to whoever they wish and at any price.

Who can nominate?

We can only consider nominations from certain organisations. These are:

Parish and town councils

Unincorporated bodies – with at least 21 individual members who appear on the council’s electoral roll

Neighbourhood forums – as described in the Town and Country Planning Act 1990

The following categories of Community Interest Groups (CIGS) with a local connection:

A charity.

A community interest company.

A company limited by guarantee that is non-profit distributing (in this context non-profit distributing means that any surplus is not distributed to its members, but is wholly or partly applied to the district council's area, or to a neighbouring local authority area).

An industrial and provident society that is non-profit distributing.

Groups will need to demonstrate a local connection, and that their activities are wholly, or partly, concerned with the area or with a neighbouring authority’s area.

What happens following nomination?

We will decide whether or not to list an asset within eight weeks of the nomination submission.

The organisation which originally nominated the asset will be notified of the outcome, together with reasons if the application is unsuccessful.

Successful nominations

Assets that are considered to be of community value will be added to the ‘List of assets of community value’. Assets will remain on the list for five years, and a land charge will be registered against the property. When the five years have expired, an eligible community organisation can submit a new nomination.

The organisation which originally nominated the asset will be notified if the asset is subsequently removed from the list, following a review of the decision.

Unsuccessful nominations

If the nominated asset is not considered to be an asset of community value, or if the nomination was ineligible, we will provide an explanation of why it was unsuccessful to the organisation which made the nomination.

In such circumstances, the property will be added to the ‘List of unsuccessful applications’ and will remain on the list for five years.

Notifying owners and occupants

If the council decides to list a property, there will be a process for review and appeal. We will take all practicable steps to notify the owner and lawful occupants that it is considering listing the property. We will also notify these people of the outcome of the nomination.

Who can bid?

Only community interest groups that meet the government's criteria can bid to buy a community asset. Not all groups that are eligible to nominate are also eligible to bid.

The following organisations are eligible to bid:

Parish councils

Charities

Community interest companies

Or, one of the following, provided it does not distribute any surplus it makes to its members, and any surplus it makes are wholly, or partly, applied for the benefit of the administrative area of Lichfield District Council, or one of our neighbouring authorities:

A company limited by guarantee.

An industrial and provident society.

In addition, a bid body must have a local connection, which means that its activities are wholly or partly concerned with the administrative area of Lichfield District Council, or one of our neighbouring authorities.

What is the moratorium period?

Within six weeks from the council notifying the community that an owner wishes to sell their listed property, an eligible community interest group must let the council know in writing that it wishes to bid.

This then opens a six month period (from the day the owner notified the council) in which to prepare a bid. This is known as the moratorium period.

We will acknowledge the request to bid and will notify the owner that the moratorium has been triggered.

The status of the listed asset on the list will be changed to reflect that it is for sale and that the moratorium has been triggered.